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4 new Maharlika directors sworn in

FOUR new directors of the Maharlika Investment Corp. (MIC) were sworn in at Malacañang on Wednesday, the Presidential Communications Office said.

In a statement, the Palace said the new directors are Vicky Castillo L. Tan, a former Asian Development Bank director; Andrew Jerome T. Gan, Singapore advisor for Picfel & Cle, Banquiers and a former Globe Land Development Corp. managing director; German Q. Lichauco of Orca Energy, Inc., a lawyer, and Roman Felipe S. Reyes, Radio Philippines Network, Inc. (RPN-9) and Converge ICT Solutions, Inc. director.

Last month, President Ferdinand R. Marcos, Jr. appointed Rafael D. Consing, Jr., chief executive officer and president of the MIC.

The government is counting on the MIC to be fully operational by the end of the year. — John Victor D. Ordoñez

Congressional think tank questions need for carbon tax, citing low PHL emission levels

PHILSTAR FILE PHOTO

THE PHILIPPINES may not need to impose a carbon tax due to its low emission levels, a policy think tank attached to the House of Representatives said.

“The Philippines produces relatively little carbon dioxide — whether it is compared to developed countries or its ASEAN (Association of Southeast Asian) neighbors. This, in turn, puts into question the supposed necessity and urgency of instituting a carbon tax in the Philippines,” the Congressional Policy and Budget Research Department (CPBRD) said in a report. 

Philippine carbon dioxide emissions are significantly lower compared to other Southeast Asian countries, the CPBRD said, citing data from the Emissions Database for Global Atmospheric Research.

It emitted 148 million metric tons (MT) of carbon dioxide in 2021, compared to Malaysia (251.55 million MT) and Indonesia (602.59 million MT).

The CPBRD noted, however, that Indonesia’s population is twice that of the Philippines.

It also said that Malaysia, which has a population of 34 million, produces thrice the carbon dioxide on a per-capita basis. “This, in turn, underlines the energy poverty of Filipinos — even in comparison to their ASEAN neighbors,” the CPBRD said.

The think tank added that a 5% loss from imposing a carbon tax on electricity as well as land, air and water transport would mean a total economic loss of P236.7 billion, or roughly 1.1% of gross domestic product.

“If a carbon tax is intended to be the primary regulatory strategy to prevent further increases in overall carbon emissions, then its rate has to be sufficiently large to reduce demand for carbon-emitting activities by the aforementioned amount,” the CPBRD said.

It also said that the Philippine economy is still “wholly incapable of efficiently and painlessly transitioning to a low-carbon trajectory,” given its heavily reliance on fossil fuels and slow transition to renewables.

“Solar and wind resources account for a tiny fraction of electricity supply — despite billions spent in subsidies. The aggressive expansion of renewable assets also demands the conversion of agricultural land into solar and/or wind farms, further aggravating existing agricultural productivity woes,” the CPBRD said in its report. 

It also said that an “energy-poor” country like the Philippines would struggle to develop its industries if a carbon tax is imposed.

“The modernization of flagging agricultural and manufacturing sectors, in particular, demand the widespread adoption of energy-intensive production processes,” the CPBRD said. 

Carbon taxes in the Philippines could generate revenue of up to $7 billion by 2030, according to a study by the International Monetary Fund.

The Philippines emitted about 146.5 million tons of carbon dioxide from energy consumption in 2022, the Energy Development Corp. has estimated.

The Philippines has committed to reduce its greenhouse gas emissions by 75% by 2030.

Climate change could cut Philippine economic output by 13.6% by 2040, the World Bank said in a report last year. — Beatriz Marie D. Cruz

Unified PPP Framework

In 1990, Republic Act (RA) No. 6957 or the Build-Operate-and-Transfer (BOT) Law institutionalized the private sector’s participation in financing and developing government infrastructure projects. For the last decade, the BOT Law and its Implementing Rules and Regulations (IRR), the National Economic and Development Authority (NEDA) Joint Venture (JV) Guidelines, PPP Codes of Local Government Units (LGUs), and issuances from the PPP Governing Board made up the overall regulatory framework for PPP. The constantly evolving infrastructure sector called for amendments to the BOT IRR in 2006 and in 2012, and then twice in 2022. On April 25, the 2023 NEDA JV Guidelines were released a decade after its previous version took effect. On the local level, LGUs are championing their own PPP/JV Codes.

This momentum pushed our legislators to consolidate all the rules into one law. And so on Dec. 5, the Public-Private Partnership Code of the Philippines (RA 11966) was signed into law and took effect yesterday, Dec. 20.

PPP DEFINED
PPP, while inferred from the modalities in the BOT Law, was never specifically defined. Finally, Section 3 (cc) of the PPP Code defined PPP as any public infrastructure or development project and service implemented under the law. This must be read in conjunction with Section 4 which expounds on the covered projects of the law, namely: “contractual arrangements between an Implementing Agency and a Private Partner to finance, design, construct, operate, and maintain, or any combination or variation thereof, infrastructure or development projects and services which are typically provided by the public sector, where each party shares in the associated risks.”

Aside from the straightforward definition, the law enumerates arrangements which qualify as PPP: (a) JVs; (b) toll operation agreements; (c) lease agreements involving participation of a private partner in an existing land or facility owned by the government; (d) lease agreements as components of a PPP project; and (e) all other arrangements akin to PPP.

Clearly, it is a one-stop shop for all your PPP needs.

THRESHOLDS AND APPROVERS
The law updated the approval thresholds for national and local PPP projects.

For projects costing at least P15 billion, the NEDA Board is now the designated approver, on the recommendation of the NEDA Board-Investment Coordination Committee (NEDA ICC). For projects below P15 billion, the head of the Implementing Agency or the NEDA Board-ICC may approve depending on the circumstances.

Meanwhile, LGUs are given authority to approve local PPP projects within their jurisdiction, as such projects only require approval of the legislative bodies of LGUs to proceed to tender, unless such projects require financial undertakings by the National Government or they physically overlap with another approved government project. Thus, this eliminates the need for LGUs to structure projects as JVs just to avoid the tedious approval process of the NEDA ICC.

BEST MANDATES, ONE LAW
Years of experience paved the way for best practices to ripen into law. The PPP Code takes the best provisions from the BOT Law, NEDA JV Guidelines, and further assimilates them, namely, (a) risk management fund (RMF); (b) alternative dispute resolution; (c) contract management and risk mitigation; (d) procurement of independent consultants; and (d) public disclosure of tender documents and PPP contracts.

Zeroing in on RMF, the law distinguishes between the National PPP RMF and the Local PPP RMF. While both serve as payment for contingent liabilities arising from PPPs in accordance with its terms, the National PPP RMF is to be managed by the PPPC while the Local PPP RMF is subject to the guidelines of the PPP Governing Board of the LGU.

The PPP Center (PPPC), which is the government agency tasked with facilitating the growth of PPPs, can now draft policy opinions and issue non-policy opinions on PPP matters. This is especially beneficial as key players often seek clarification on PPPs from the agency.

The law also adopted new concepts such as the claw-back provision on excessive returns, streamlined processes for unsolicited proposals, green financing, and land value capture strategies, among others.

EFFECT ON THE STATUS QUO
What happens now to the existing contracts or upcoming PPP projects?

• Existing contracts will be governed by their respective agreements. The PPP law applies in a suppletorily manner only if no rights are infringed upon.

• PPP projects with notices of award but with no executed contracts on or before Dec. 20 will be governed by the new law only if no rights are infringed upon.

• Solicited PPP Projects which have commenced bidding or Unsolicited Proposals which have commenced with the Swiss Challenge stage (also known as the comparative bidding process) will be governed by the Act only if no rights are infringed upon; otherwise, the rules in effect at the commencement apply.

Proposed PPP projects which are either pending approval or approved but have not undergone bidding or Swiss challenge will be governed by the Act except for the project approval provisions.

Several provisions of the law are not self-executing and will require an IRR before they become implementable. Under the law, the IRR will be promulgated within 90 calendar days from the effectivity of the Code. The IRR will further expedite procedures for PPP project approval, processing of unsolicited proposals, bid evaluations, protests, supervision and monitoring of PPP projects, and setting the reasonable rate of return. The IRR will also provide a list of government undertakings that may be granted to a PPP project.

With the administration’s focus on building more (and better) infrastructure, the PPP Code must embody practices that fulfill the demands of this fast-moving sector. Indeed, the new law will balance all interests with the welfare of the people (the ultimate end-users) as a compass.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Joelle Mae Garcia is a senior associate at the Tax Services group of Isla Lipana & Co., the Philippine member firm of the PwC network.

joelle.mae.garcia@pwc.com

Karl Eldrew Yulo soars with seven golds in Batang Pinoy gymnastics

STILL RINGS

KARL ELDREW YULO of Manila zoomed to the top as the most bemedaled athlete so far with seven golds as defending champion Baguio City claimed the medal race lead halfway through the 2023 Batang Pinoy national finals at the Rizal Memorial Sports Complex in Manila.

Baguio City, the three-time reigning champion, stabilized its bid for another national crown by leaning on the four-gold medal haul of taekwondo jins in the kyorugi event to snatch the race with 13 gold medals, seven silver and 22 bronze medals.

The Summer Capital of the Philippines started cool inside the Top 5 in the first two days before waxing hot in Day 3 as Joshua Aaron Erece (junior male fin), Chezka Nicolette Luzadas (cadet female 4th category), Rolyn Matthew Salay (cadet male 1st category) and Zash Khaine Mendoza (cadet 4th category) led the gold rush.

Aileen Amancio also threw in contribution by ruling the girls’ 13-15 age-group in arnis after the initial harvest of Aiden Eclipse (male 14-15), Edel Ali Pangayan Ngina  (male 16-17), Lara Czarina Langaoen (female 8-9), Lyre Anie Ngina (female 12-13) and Pathiel Eave Paus Dela Rosa (female 14-15) in muay thai wai kru in the first days.

Baguio wasn’t just about martial arts as it also made its mark in the opener of archery with Chass Mhaiven Nawew Colas winning the male 15-under 30-meter and 40-meter recurve for a quick dual-gold feat.

But the moment belonged to Mr. Yulo, who made the biggest leap — and the most perfect landing — with seven captivating golds in the men’s artistic gymnastics, just months after owning the Palarong Pambansa anew with a six-gold harvest.

Mr. Yulo, the brother of world champion Caloy, was head and shoulders above the competition in the boys’ FIG Juniors 14-17 category by reigning supreme in all the individual events of vault, still rings, floor exercise, high bar, parallel bar, pommel horse, and the individual all-around at GAP National Gymnastics Center in Intramuros.

A possible eighth gold medal is in play for Mr. Yulo as of press time pending the deliberation of the technical committee on the result of the team events with Manila as frontrunner.

Not to be left behind was Maria Celina Angela Gonzales of San Juan with four gold medals in the women’s artistic gymnastics (WAG) High Performance 1 with wins in the uneven bars, balance beam, floor exercise and individual all-around.

In cycling, Quezon City captured a double-gold in the boys and girls’ 14-15 individual time trial courtesy of Nathaniel Alvaro Aquino (23:41) and Maria Louisse Criselle Java Alejado (28:23.2)

Meanwhile, Pasig’s Arvin Naeem Taguinota became the most bemedaled tanker with another win in the boys’ 12-nder 100-meter backstroke, clocking in 1 minute and 5.63 seconds after his wins in the 200-meter individual medley, 50-meter backstroke and 200-meter relay.

In the medal race, Quezon City stayed at third with 10 golds, 7 silvers, 7 bronzes, and Pasig (8-10-16) lurked at No. 5. Davao City (10-9-8) and Muntinlupa (10-0-7) were steady at second and fourth, respectively. — John Bryan Ulanday

Swimmer Fernandez is first five-gold winner in PHL National Games

QUENDY FERNANDEZ

QUENDY FERNANDEZ of Puerto Princesa delivered a tsunami of a performance as she ruled the women’s 200-meter backstroke on Wednesday to emerge the first quintuple gold medal winner in the Philippine National Games at the PhilSports swimming pool in Pasig.

Riding high from a tidal wave-like four-gold haul in the first two days, the 18-year-old University of the Philippines star splashed her way to a fifth mint after she clocked two minutes and 29.52 seconds.

It was another spectacular swim for the reigning UAAP Rookie MVP after her earlier magnificence in the 50-meter and 100-meter back, 50-meter butterfly and 200-meter medley relay with Maglia Jay Dignadice, Pearl June Daganio and Cindy Fernandez.

She then dedicated her feats to the Palawan Swimming Club coach Toyskie Dalisay.

Lyka Catubig of Davao City claimed her second gold as she reigned supreme in the 5000-meter walk where she timed in 19:26.84 in centerpiece athletics in the nearby track oval.

It came two days after she stunned her more illustrious foes with a walk to remember in the 3000 meters.

Other track and field winners were the national team’s Junel Sergio Gobotia, (men’s steeplechase) and Evalyn Palabrica (women’s javelin), Naga’s Melquisedec Manto (men’s 5000 meters), and Bohol’s Diana Rysiamie Hurano (women’s long jump).

In chess at the GSIS Gymnasium, Dasmariñas’ Kylen Joy Mordido drew with Francois Marie Magpily in the seventh and final round to claim the women’s individual standard gold with 6.5 points.

The Woman Grandmaster candidate then took her second gold in the team standard event with Jerlyn Mae San Diego.

Over at the Manuel Roxas High School Gym, Zamboanga City’s Jerome Etang Negapatan pocketed a pair of mints in the men’s Wai Kru and Mai Muay.

Krystal Yvonne Malecdan of Baguio snared the women’s Wai Kru gold.

In arnis at the Ayala Malls in Paranaque, national team mainstays Rod Xhedrick Mendoza and Leslie Avila conquered the men and women non-traditional double weapon.

The other arnis victors were Valenzuela’s Ian Patrick Gurrobat and Lapu Lapu’s Jannalyn Ycoy in men and women traditional single weapon. — Joey Villar

European champion Manchester City outclasses Urawa Red Diamonds to reach Club World Cup finale

JEDDAH — Manchester City outclassed Urawa Red Diamonds in a 3-0 victory in the King Abdullah Sports City stadium on Tuesday to set up a Club World Cup final showdown against Brazilian side Fluminense.

European champions Man City was frustrated by a well-organized Japanese side during the opening half but took the lead with an own goal by Marius Hoibraten in stoppage time.

Mateo Kovacic made it 2-0 in the 52nd minute with his first goal since joining City from Chelsea and Bernardo Silva’s deflected shot a few minutes later meant City could play the rest of the game in cruise control.

Pep Guardiola’s City, who had won only three of its previous eight games in all competitions, is looking to become the fourth English club to win the title after Manchester United, Liverpool and Chelsea.

They will start as heavy favorites in Friday’s final against Copa Libertadores champions Fluminense which on Monday beat Egypt’s Al-Ahly 2-0.

“The players know how important it is for the club,” Guardiola, who won the title twice with Barcelona and once with Bayern Munich, said. “To be in this final, you have to do incredible things like win the Champions League. This may be the only time we play this in our lifetime.

“We will try to win the title we don’t have to complete the circle.”

City have suffered some domestic wobbles of late and have slipped off the pace in the Premier League in its quest for a fourth successive title.

But even with Erling Haaland still missing and Guardiola shuffling his pack after Saturday’s 2-2 draw with Crystal Palace, they had far too much for the J1 League side.

The Diamonds’ gameplan was obvious as they packed their defence and midfield to create a red wall in front of their goal and it worked well as City struggled to find openings.

Despite barely getting out of their own half they almost made it to halftime on level terms but were undone as Matheus Nunes finally found some space and his low cross was intercepted by Hoibraten who steered the ball into his own goal.

The game opened up in the second half with Diamonds showing a little more adventure but it made it easy for City.

Kovacic, twice a winner of the competition with Real Madrid and once with Chelsea, was sent clear and he surged away before smashing a shot high past Shusaku Nishikawa.

City wrapped it up when Nishikawa made a fine save but the ball fell to Bernardo Silva whose shot took a nick off Hoibraten and went just inside the post.

All that was left then for City was to make sure of a first clean sheet since Nov. 7.

Urawa Red Diamonds will face Al-Ahly in the third-placed playoff on Friday. — Reuters

Stephen Curry, Warriors put Celtics to rest in OT

STEPHEN CURRY drained a desperation 3-pointer at the end of the shot clock with 11.5 seconds left in overtime (OT) to help the Golden State Warriors rally past the Boston Celtics, 132-126, on Tuesday night in San Francisco.

Down by as many as 17 points and never in front after halftime until the second minute of overtime, the Warriors won a third straight game led by Curry’s game-high 33 points and Klay Thompson’s 24.

Derrick White had 30 points and Jaylen Brown added 28 to pace the Celtics, who saw a five-game winning streak come to an end but survived a scare when Jayson Tatum had to leave the contest in the first quarter because of a sprained left ankle.

The Boston star was able to return in the second quarter, but he struggled through a 5-for-17, 15-point night in which he still found time for a team-high-tying seven assists.

The teams combined for six missed shots to open the extra session before Jonathan Kuminga stole an Al Horford pass and dunked for a lead Golden State never relinquished.

Trayce Jackson-Davis added a dunk and prevented a Brown slam with a block, helping the Warriors retain a 127-126 lead into the final seconds.

That’s when Curry missed a driving layup without hitting the rim, and with the shot clock running, the Warriors retrieved the ball and got it back to Curry, whose rainbow 25-footer flew cleanly through the net for the Boston backbreaker.

A wild finish to regulation saw the teams combine to miss eight consecutive shots after Curry had produced a 121-all tie with a 3-pointer with 1:36 to go. The Celtics had six of the eight misses, including five on a single trip down the floor that included a pair of missed 3-pointers by White and one by Tatum.

Tatum later had a chance to be the hero but misfired on a buzzer-beating 23-footer.

Curry and Thompson each made six 3-pointers on a night when the Warriors went 20-for-50 from deep. The Celtics made 17 of 58 attempts from long range, with White draining seven treys.

Kuminga finished with 17 points, Jackson-Davis had 10 to complement a game-high 13 rebounds and Chris Paul finished with nine to go with a game-high 12 assists.

Horford and Jrue Holiday added 13 points apiece for the Celtics, who got 11 points from Payton Pritchard and 10 from Neemias Queta. Queta also hauled in 10 rebounds for Boston, which opened a four-game California swing.

Horford was Boston’s leading rebounder with 12 boards.

The Celtics led 65-62 at the break and opened up a 97-86 advantage after three quarters. — Reuters

Chelsea, Fulham into League Cup semis after shootout win

LONDON — Chelsea and Fulham booked their place in the semifinals of the League Cup on Tuesday when they followed up 1-1 draws with penalty-shootout wins over Newcastle United and Everton respectively, with Middlesbrough also making the last four.

Chelsea beat Newcastle 4-2 on penalties, at Stamford Bridge after substitute Mykhailo Mudryk kept the Blues alive with a 92nd minute equalizer, while Fulham defeated Everton 7-6 in their shootout. Middlesbrough beat League One side Port Vale 3-0 to cruise into the last four.

Liverpool face West Ham United to decide the last semifinal spot on Wednesday.

Newcastle had appeared set to snatch a 1-0 win in west London until Kieran Trippier, on as a substitute, failed to cut out a Malo Gusto cross and allowed Mudryk, also on as a sub, to slot home, levelling the tie at 1-1 and taking it to penalties.

England defender Trippier turned a bad night into a disastrous one when he fired Newcastle’s second penalty wide before Matt Ritchie saw his effort saved athletically by Chelsea’s Djordje Petrovic, making only his second start in goal for the Blues.

“Trips is an incredibly strong character,” Newcastle manager Eddie Howe told reporters.

“When he’s given us so much, now’s our turn to support him and look after him the other way and that’s what we’ll do.”

Chelsea had gone behind in the 16th minute when Callum Wilson, surrounded by Chelsea defenders, pounced on an error by Benoit Badiashile who got the ball caught in his feet allowing Wilson to flick his finish past Petrovic.

The hosts dominated possession throughout the game but struggled to break down a well-drilled Newcastle defence.

They brought French forward Christopher Nkunku off the bench for his first competitive appearance for the Londoners having suffered a knee injury in pre-season shortly after his transfer from RB Leipzig.

‘BELIEVE UNTIL THE END’
But the expensively assembled Blues, who have struggled for a second straight season in the Premier League, had seemed destined to throw away a precious chance of silverware until Mudryk’s late strike.

“Obviously it means a lot. Sometimes things happen when you trust in each other and believe until the end,” the Ukrainian — who has struggled to find his feet since signing for Chelsea nearly a year ago — told Sky Sports.

“Sometimes when the game is tough you need to keep pushing and believe until the last second because it’s football and everything can happen.”

Mudryk was one of four Chelsea players to score in the shootout, along with Nkunku, Cole Palmer and Conor Gallagher.

Chelsea, in their first season under Mauricio Pochettino, are pinning their hopes on the domestic cups as they currently sit 10th in the Premier League and did not qualify for European competition.

The defeat for Howe’s Newcastle — without a major trophy since the 1950s — represents a second blow in the space of a week after they were eliminated from the Champions League last Wednesday.

Everton’s recent good run of results came to an end as they came back from a goal down to equalise with eight minutes remaining, but Fulham got the better of them from the penalty spot to silence the home crowd.

Toffees defender Michael Keane turned the ball into his own net early on to give Fulham the lead at Goodison Park, but a goal from substitute Beto eight minutes form time threw the home side a lifeline.

Both keepers saved a spot kick before Everton’s Idrissa Gueye struck a post with his hasty effort, and Fulham centre back Tosin Adarabioyo stepped up score to put the Londoners into the last four of the competition for the first time in their history. — Reuters

China stays open to dialogue, but pins ‘provocation’ on Philippines

PHOTO FROM PHILIPPINE COAST GUARD

By John Victor D. Ordoñez, Reporter

CHINA moderated its tone towards the Philippines on Tuesday, expressing openness to dialogue over the two nations’ territorial disputes in the South China Sea after Philippine President Ferdinand R. Marcos, Jr. said he would explore alternatives to resolving maritime issues.

“We stand ready to properly handle disputes through dialogue and consultation with the Philippines and will not close our door of dialogue and contact with the Philippines,” Chinese Foreign Ministry spokesperson Wang Wenbin told a news briefing.

However, Beijing continued to stick with its narrative that traced the cause of tensions to Manila’s supposed provocative stance.

“The recent events between China and the Philippines in the South China Sea are caused by deliberate infringement of China’s sovereignty and the provocations of the Philippines,” Mr. Wang said.

Speaking in Japan last Saturday, Mr. Marcos said his government plans to explore a “paradigm shift” in the way it deals with China amid its repeated incursions and swarming of South China Sea features closest to the Philippines.

He underscored how Beijing has ignored traditional diplomatic means initiated by the Philippines, including 132 diplomatic protests over the aggressive actions of Chinese vessels within the country’s exclusive economic zone since he became president in mid-2022.

As a result, the Philippines is looking to work with its global partners to come up with a joint position on safeguarding the South China Sea, he said.

But Mr. Wang stressed that maritime disputes between the Philippines and China do not represent the entirety of diplomatic relations between the states.

“We hope that the Philippines will make the right choice, seriously honor its commitment of properly handling disputes through dialogue and consultation and work with China to pursue the healthy and steady growth of bilateral ties and jointly safeguard peace and stability in the region,” he said.

The Philippine defense chief, however, rebuked China on Wednesday for accusing his country of provoking tension and stirring trouble in the South China Sea, saying only Beijing believed what it was saying.

“Truth and in fact, no country in the world, none, supports unequivocally their claim to the whole of South China Sea,” Defense Secretary Gilberto C. Teodoro, Jr. said as both nations have exchanged accusations over recent collisions in the waterway.

China has been blocking Philippine resupply missions to BRP Sierra Madre, the vintage warship grounded on Second Thomas Shoal, which is only 200 kilometers (km) west of Palawan Island and more than 1,000 km from China’s nearest major landmass, Hainan Island.

Tensions between the Philippines and China have worsened after the Chinese Coast Guard fired water cannons to block Manila’s attempt to deliver food and other supplies to troops stationed at BRP Sierra Madre.

In 2016, a United Nations-backed arbitration court based in The Hague said China’s claim to nearly the entire South China Sea has no legal basis, but Beijing has largely ignored the ruling.

China insists on its claims of almost the entire South China Sea, a conduit for more than $3 trillion of commercial shipping annually, including parts claimed by the Philippines, Vietnam, Indonesia, Malaysia and Brunei. — with a report from Reuters

One China Policy hampers Manila-Taiwan trade, says health sector executive

BW FILE PHOTO

By Beatriz Marie D. Cruz, Reporter

TAIPEI — The Philippine government’s adherence to the One China Policy could be restricting potential trade and investment opportunities with Taiwan, according to a hospital industry executive who attended the recent Healthcare+ Expo, here.

“There are some problems between the trade between Taiwan and the Philippines probably because of the One China Policy,” Jose Rene D. de Grano, president of the Private Hospitals Association of the Philippines, Inc., told BusinessWorld on the sidelines of the expo last November.

He noted how particular imports from Taiwan may not be accepted by the Department of Health (DoH) because of the One China Policy, which states that Taiwan is part of China.

In April, Chinese Ambassador Huang Xilian asked the Philippines to oppose Taiwan’s independence if the country “cares genuinely” about the welfare of more than 150,000 overseas Filipino workers (OFW) there.

Anthony B. Rivera, director for commercial affairs at the Philippine Trade and Investments Center in Taipei (PTIC-Taipei), said the One China Policy is not discussed in investment and trade talks between Philippine and Taiwanese businesses.

“[The] One China Policy… is beyond what we do because what we do is really offer opportunities for both trade and investment. We focus on the business,” Mr. Rivera said also on the sidelines of the expo.

President Ferdinand R. Marcos, Jr. in February gave the United States access to four more military bases on top of five existing sites under the 2014 Enhanced Defense Cooperation Agreement (EDCA) with Washington. But he ruled out the use of Philippine military bases to launch offensives.

Ongoing tensions between Manila and Beijing were underscored by a recent incident where Filipino officials accused the Chinese Coast Guard of using a water cannon and ramming Philippine civilian boats on a resupply mission to troops stationed at the Second Thomas Shoal.

Mr. De Grano pointed out that products, especially healthcare technology, are cheaper if bought directly from Taiwan than in China or the United States, noting how the latter also procures manufacturing parts from Taiwan.

However, he cautioned Philippine hospitals to prioritize equipment with longer warranties over lower costs.

Jose P. Santiago, Jr., the incoming president of the Philippine Hospitals Association (PHA), stressed the need for the government to improve infrastructure and mobility across the country to facilitate the distribution of healthcare technologies to various regions, including isolated areas.

“We’re separated by islands, so the infrastructure is really very important,” he stated in a separate interview with BusinessWorld.

Mr. Santiago also noted potential cost savings through increased manufacturing collaboration with Taiwan, particularly in the healthcare technology sector. “It will probably be cheaper to manufacture that machine or that technology in the country (Philippines)… [and] you can get tax incentives,” he said.

During the PHA’s 74th National Convention, Health Secretary Teodoro J. Herbosa outlined a plan to establish at least one hospital per province.

Mr. Santiago envisioned a substantial increase in the demand for technology and equipment under such a plan, saying: “Could you imagine how the big demand for technology and equipment [would be]? So if there’s a [Taiwanese] manufacturing plant, it could be more affordable [for us].”

SC petition filed vs jeepney modernization plan

TRANSPORT group Pinagkaisang Samahan ng mga Tsuper at Operator Nationwide (PISTON) — PHILIPPINE STAR/JESSE BUSTOS

By Jomel R. Paguian

A GROUP of jeepney drivers and operators filed a petition before the Supreme Court (SC) on Wednesday, seeking to declare null and void the department order and circulars implementing the Public Utility Vehicle Modernization Program (PUVMP).

The Pinagkaisang Samahan ng mga Tsuper at Operators Nationwide (PISTON) filed a 57-page petition for a temporary restraining order against the Department of Transportation (DoTr) Omnibus Franchising Guidelines, which serves as the framework of PUVMP.

The petition also sought a preliminary injunction on the Land Transportation Franchising and Regulatory Board (LTFRB) issuances mandating franchise consolidation and its year-end deadline.

PISTON, in their petition, argued that the mandatory consolidation requirement infringes on the constitutional right to freedom of association, rendering it unconstitutional. “The constitutionally guaranteed freedom of association includes the freedom not to associate.”

The PUVMP mandates drivers and operators to merge their separate franchises into a cooperative or corporation by Dec. 31 to obtain franchises for modern public utility vehicle (PUV) units. The group argued that this would initiate the phaseout of jeepneys, benefiting only financially capable large corporations able to meet consolidation requirements.

“Revoking franchises due to non-participation in cooperatives is a violation of the rights of drivers and operators,” PISTON national president Mody T. Floranda said in a statement. “They will be deprived of their livelihood simply because they didn’t join cooperatives.”

The transport group said that an estimated 140,000 drivers and 60,000 operators could be displaced and lose their jobs if the year-end deadline for franchise consolidation pushes through. The group added that around 28.5 million commuters nationwide will be affected, potentially leading to a “transport disaster” in January 2024.

“We urge the Supreme Court to act swiftly to save not only the livelihoods of drivers and operators, but also the well-being of commuters,” added Mr. Floranda.

In their petition, the transport group argued that the PUVMP is an improper exercise of police power. They asserted that the authority to impose a ban on traditional jeepney units falls within the domain of legislative bodies, emphasizing that the DoTr and the LTFRB are executive offices. The petition stated that the modernization plan has been implemented through department orders and circulars alone without any law in effect.

The petition also argued that the LTFRB has no authority to regulate transport cooperatives, stating that it is within the jurisdiction of the Office of Transportation Cooperatives (OTC).

The transport group asserted in their petition that jeepney drivers and operators are under pressure to surrender their jeepney units, which violates their constitutional right to livelihood.

“The subject circulars require forming and joining of cooperatives before small jeepney drivers or operators could avail of the equity subsidy. Ultimately, they mandate the surrender of jeepneys and thus violative on the right to gainful employment.”

Echoing a High Court ruling, the petition stated: “The power to regulate does not include the power to prohibit. The power to regulate does not include the power to confiscate.”

Apart from PISTON, representatives from Bayan Muna, No To PUV Phaseout Coalition, public transport advocacy group PARA, and commuters group Komyut, joined the petition.

German law to benefit OFWs

THE EMBASSY of Germany in Manila said on Wednesday that Filipinos looking to work in Germany will find it easier to migrate after its new Skilled Migration Act took effect last November.

“Germany is welcoming skilled workers with open arms and full support,” German Embassy’s Economic Counsellor David Klebs said in a statement on the newly enacted law that lowers salary thresholds and expanded eligibility for foreign applicants like overseas Filipino workers (OFWs).

“This law creates even better incentives for Filipino skilled workers to consider working in Germany,” he added as he explained how the measure streamlines the employment process for migrant workers and allows information technology specialists to secure European Union Blue Cards on professional experience alone.

The embassy said it has been working closely with the Technical Education and Skills Development Authority, the Commission on Higher Education, and the Department of Migrant Workers. 

“The Skilled Migration Act signifies a progressive step in the bilateral relationship (with the Philippines), promoting collaboration, fair immigration and mutual benefit for both countries,” embassy said.

Meanwhile, President Ferdinand Marcos, Jr. vowed that his administration would continue to craft programs and services catered to migrant workers.

“There are many projects lined up, and even our current programs will be improved,” he said in his speech in Filipino during the OFWs Family Day in Pasay City.

Mr. Marcos noted that the DMW is planning on launching the One Repatriation Command Center’s 24/7 hotline which will assist OFWs who need repatriation or reintegration services. — John Victor D. Ordoñez